PRESENTATION OF THE 2013 BUDGET ESTIMATE BY HIS EXCELLENCY, HON. HENRY SERIAKE DICKSON
PRESENTATION OF THE 2013 BUDGET ESTIMATE BY HIS EXCELLENCY, HON.
HENRY SERIAKE DICKSON, GOVERNOR OF BAYELSA STATE AT THE STATE HOUSE OF
ASSEMBLY ON MONDAY 24TH OF DECEMBER, 2012
I want to express my appreciation to the dutiful way this Assembly has been performing the responsibilities assigned to it. I want to convey to you the deepest appreciation of your State government and indeed the good people of this State.
Mr. Speaker, considering the season, let me use this occasion to formally, wish you and all the members of this House of Assembly Merry Christmas and a happy and prosperous new year that awaits all of us in Jesus name. Mr. Speaker, today I’m here with your permission to present to you the 2013 Appropriation estimate from the Executive branch, which I believe will receive your usual kind and expeditious attention. It is a great honour and privilege for me to come into this hallow chambers once again to present the 2013 budget estimation to you, the representatives of our good and peace loving people.
Mr. Speaker, during the presentation of a revised 2012 appropriation estimate to this assembly, I detailed the fundamental principles and philosophies as well as the strategy for the smooth take off of our restoration agenda. Our first budget was specially designed to ensure that we laid a solid foundation for the programmes and aspiration of our restoration government.
Mr. Speaker, after about 9 months of serious restructuring, redesigning and re-organization of the entire government structure and philosophy in the state, we are glad to report to you that the state is now set for the full and aggressive implementation of all the programmes and projects of the restoration government in all sectors of our life beginning from 2013. It is for this reason that I feel confident to come before you today with a budget of consolidation of Restoration. It is a budget that has been carefully crafted to ensure thorough and speedy implementation of the various programmes and policies we have advanced to be implemented to some degree in the course of the out-going year. Let me take you through some of the guiding principles underlying our budget. The first is the issue of transparency and fiscal disciple.
Mr. Speaker and Honourable members of the House, in line with our promise, government has been giving the good people of the State, month by month transparency briefings, let me again, also thank you for the expeditious passage of the law that created the legal framework for this to be done. This has increased Public trust of donor agencies as well as the interest and respect of development partners. This administration is determined to foster transparency and openness in the conduct of government business going forward. We will take all necessary measures to forestall the possibilities of waste, inefficiency and corruption in the transaction of government business in this state at all levels.
We will ensure that all payments are made in the year 2013 based on value for money. All the measures developed to achieve cost reduction particularly in the area of Personnel and Overhead costs will be sustained next year. Budget discipline will be our watchword in the 2013 financial year and will ensure greater prudence and greater fiscal discipline. The second issue, we are very much concerned about, is the need to reduce the recurrent expenditure and therefore the running cost of government.
Government has continued with the policies aimed at addressing the huge wage bill of the state that we inherited that was built over several years and we have come up with a policy by which, next year, we are going to reduce it through the unconcluded biometric exercise that was somehow started and suspended. This, we believe will give us some positive results. We will work with our Permanent Secretaries, heads of various departments and agencies to clean up our nominal roll. We have also introduced daily attendance record to ensure that those who do not work are not paid salaries. We will continue to work with consultants to ensure that the processes of staff engagement, salary preparation, salary payment, monitoring of staff attendance at their places of work are computerized and this should be a basis for the preparation of nominal roll for payment of salaries.
The staff biometric database will upgrade for migration to the human resource platform to make all salary payments E-based. Right sizing the public service will be pursued will vigour and efforts will be put in motion to prevent payroll fraud by way of the bill that you have already passed and which we have already assented to. We will continue to fish out all those wrongly employed in the public service and ensure their immediate disengagement at all levels both in the local governments and all other agencies that are subject to fraud. We will also make deliberate efforts in the reduction of overheads and recurrent expenditure to channel our scarce financial resources for infrastructural development and for deployment of other key sectors of our economy.
We will not stop these processes until we have made significant progress in ensuring that all ghost workers, persons who are experts in inflating salary figures are cleared from our state wage bill. Such people will be prosecuted in the provisions of the bill that this Assembly has dutifully passed which we have since signed into law. The other issue Mr. Speaker, that is of interest and will be pursued with vigour next year is that of raising our IGR base. Our state is having one of the lowest internally generated revenue profiles. To address this, your government has put in place a number of policies to ensure that our IGR comes up. An Internal Revenue Committee was set up which identified a number of untapped sources of revenue and the loopholes in the current system.
Government has set up a new board, which I’m going to inaugurate this afternoon made up of men of experienced to handle our IGR progress. We are also setting up a Tax IGR assessment and Review Committee to coordinate all our IGR generating MDAs and activities. This, as a result of our seriousness will be led by the Deputy Governor of the state. I have directed the Attorney-General and one other officer to review and come up with a proposed bill to streamline all IGR processes and capture those potential sources that we have not taken advantage of. For the civil servants and political appointees, we have set up machinery to ensure that we all pay our correct taxes in accordance to the relevant tax laws of this country, with particular reference to the Personal Income Tax Act (PITA). In the same vein, we will ensure that all multinational companies and all taxable adults and other entities doing legitimate business in our state will be made to pay the correct taxes as and when due to further boost the IGR base of our state.
Bayelsans will be rest assured that we will be very transparent in the utilization of their tax money.to this end, I have directed that specific bank accounts be opened for IGR generation and the amount generated will be announced to you every month beginning from next month. Let me also Mr. Speaker, with pleasure report to you that with the steps we have taken so far, in the out-going year, our IGR has gradually started to increase from less than 100 million naira, and I can report to you that the last report I have, show an IGR monthly of over 500 million naira.
On the performance of the out-going budget, the year 2012 was a year of strategic planning and programming for our administration. Consequently all the institutional and administrative structures needed for effective service delivery with particular focus on good governance, transparency and prudence have been successfully erected and clearly identified. Therefore, the good people of Bayelsa State, I can rightly express an aggressive, determined and a properly coordinated execution of our restoration programme in year 2013.
You will recall that the initial appropriation for the 2012 fiscal year was the sum of 238.157 billion naira. Due to the devastating effects of the flood this year, government raised a supplementary budget of 16 billion naira and this was passed, the sum of 1.5bn was appropriated which government used to augment the various programmes that are connected to alleviating the plight of flood victims. Of this amount, 98.719bn or 38.715% was earmarked in the entire budget for recurrent expenditure while the sum of 156.315bn or 61.29% was devoted for capital expenditure. Mr. Speaker, permit me to use this opportunity to thank the people of Bayelsa State for their support and resilience in the trying period of the flood disaster which actually stalled our developmental efforts which you know also brought a lot of hardship.
In terms of revenue, which accrues to the state during the out-going year, actual receipts stand at 206.509bn or 80.98% of the budgeted sum as at the end of November 2012.The breakdown is as follows: Statutory Allocation was #25.283bn13% Derivation actually received #84.397 bnExcess crude and Budget augmentation #31.193 bnOther receipts were #22.811 bnIGR came to just #4.752 bn Capital Receipts #21.975 bn. So we have a total receipt of #206.509 bn, a short fall of more than #30 bn.
The breakdown of our expenditure was #156.868 bn as at the end of November for this year.The breakdown is as follows:Personnel cost #31.599 bnOverhead cost #41.605 bn Consolidated Revenue Fund charge #68.908 bnCapital expenditure #44.75 bnMaking a total expenditure profile of #186.868 bn The 2013 budget proposals have been carefully put together using the 2013-2015 Medium Term Expenditure profile as its basic platform.
Consequently, the 2013 budget comes with a total proposal of #285.930 bn comprising of #133.235 bn or 46.60% for recurrent expenditure and #152.695 bn or 53.40% for capital expenditure. The sum total of our estimate is expected to be #38.028 bn. The projected revenue profile of our state for the year 2013 consists of the following:1. Statutory Allocation-------------------#27.268bn2. Excess Crude/Budget augmentation------------------------#45.500bn3. VAT-----------------------------------------#9.955bn4. 13% Derivation------------------------#160.706bn5.
Internally Generated Revenue------#4.473bn6. Capital Receipts------------------------#38.028bnTotal --------------------------------------- #285.930bn On the other hand, our expenditure profile for the year under consideration is as follows:1. Personnel Cost: -----------------#49.142bn2.Overhead Cost ------------------#28.905bn3.CRFC ----------------- #55.188bn4.Capital Expenditure ---------------- #152.695bn Total -----------------#285.930bn The 2013 Budget Estimates are for massive physical infrastructure, revolutionary investment in agriculture, tourism hospitality, security and education, which we have declared free.
Permit me now to outline the strategic policies and programmes of the 2013 Budget. Works and Infrastructure:Mr. Speaker, as I have said and demonstrated severally in the course of the past nine months, the key to unlocking the huge developmental potentials of the state remains in the massive provision of investment in physical infrastructure. I’m aware of the concerns of some well meaning citizens of this country whether I’m not undertaking too much by way of the ambitious programmes, which we have unfolded. My answer to you is that it is better for us to dream big; it is better for us to stretch ourselves, resources and our imagination to ensure that we catch up with the rest of the whole world because we are completely
I intend not to fail, there is no project that we have abandoned; there is no project that we inherited that we are not paying attention to and we will ensure that, within the tenure of our government all these programmes and policies would be funded. There is no project on going that does not receive money. All projects that we have started, including the several that were on going, there is none that are stalled due to funding.
Accordingly, very high priority will be accorded to this critical subsector of ourEconomy: I have always said that our wealth beyond oil and gas, beyond investing in our human resources, lies in the ocean. We must conquer our difficult terrain to ensure that the roads to the 3 senatorial districts are completed and that we get to the Atlantic Ocean from the 3 main flanks. The Eastern flank through Nembe-Brass, the Central flank through Yenagoa-Oporoma-Ukubie and the Western flank through Sagbama-Ekeremor, because that is where our wealth really lies. And until we achieve this we would not have created infrastructural greatness as a state.
Accordingly, knowing that this ambitious programme of infrastructural turn around will not be achieved within the narrow confines of available government resources we are going to work to create an enabling environment and also come to this hallow chambers request that you consider working on the legal and Institutional framework to develop a reliable and a responsible concession policy and legal framework. One of the top priority project that will be the immediate beneficiary of the concession policy include, Ekeremor Agge road, Nembe Brass road, completion of the Tower Hotel and the completion of Melford Okilo memorial Hospital.
These are gigantic projects and we have to be very creative to bring the private sector, which has the funds and technical knowledge to work with us to ensure that, they are brought to a respectable conclusion. Most of these projects have been on for too long. Within the life span of our budget, we will see the completion of most of these projects. I am confident that, with the policies we have taken and within the first quarter of next year, some sections of the hospital will be put to use. Mr. Speaker, as you all are aware, there are some important jobs going on in the state.
All we are doing is to see that, we create the infrastructure within our state capital to make it a befitting one. Let me use this occasion to salute once again, the resilience and understanding shown by commuters and road users in Bayelsa state for the traffic congestion that we have all been experiencing for some time. This should not take anyone by surprise because we made a promise that the whole of Yenagoa will be a massive construction yard. We all have to be patient because we cannot prepare Omelet without breaking eggs.
This is a period of sacrifice, let us show the necessary restraint and not complain over everything because good roads and good bridges do not spring up over night. While we have a clear idea of the way forward, so bear with us. I want to talk about the dualisation of Isaac Boro road; road Safety road and several other dualisation of roads going-on and inform you that they will be completed within the 2013 budget. Also with the proposed Igbogene bye pass by which we want to link it with a dual carriageway to the Bayelsa palm road.The Airstrip, to be located on the Yenagoa – Amassoma – Egbedi axis is central to the state, and will be about 25 minutes from the city centre.
Let me use this opportunity to thank the Federal Government for partnering with us on this critical project. The term of the partnership are these: The Federal Government through its agency, NDDC and the ministry of aviation are to handle the sand filling as well as the construction of the terminal and the navigational, and we decided to undertake the most critical element of an airport which is the run-way.
The Federal Government through NDDC has since awarded the contract for sand filling of the site. The Federal Executive Council has also awarded contract for the construction of the terminal buildings. On our part, as a state government, we are responsible for acquisition and clearing of the land. Clearing of the site is going on and if not within the life span of the next budget, very early in 2014, we will have an airstrip or airport.
We are working with a world-class team and other specialists, and by next year contract for the project will be awarded as funds for that has already been set aside to begin the process of construction of the airstrip. We have also started work on the additional secretariat annexes and will be delivered within the next quarter of next year.
The Ecumenical project will also start in earnest in the course of the 2013 budget year; and so the sum of #38.8 billion naira has been earmarked for the works and infrastructure sub-sector. On education, we have in the last nine months, even with the challenges of flooding, we have begun the construction of 400 primary school buildings and 400 hundred teachers’ quarters spread across the state at over #9 billion naira cost. This is an unprecedented investment in education particularly at that level of education.
Mobilization for the said project has already begun and contactors have gone to site in most of the projects and in 2013; we hope we will be able to complete phase one. We hope to also start phase two to take another set of communities because having a good quality learning environment is the basic right of every Bayelsan child. In pursuance of our policy in secondary education, we have begun the building of model schools in every local government area with boarding facilities to accommodate 1000 students. Contract has been awarded and mobilization fee paid. In 2013, Government intends to conclude construction work on at least 28 constituency model secondary schools with boarding facilities at the cost of #200 million.
Let me Mr. Speaker and Honourable members convey the gratitude of government for your willingness to work with us in addressing this issue of educational deficiency. In the course of our interactions, you saw the need to channel your constituency projects for the year 2012 and next year, making a total of #200 million each member for the construction of these secondary schools in your respective constituencies. We have started the process of making awards and before the end of this year, award letters will be out. On technical education, we intend to make quality investment in this area of school educational system. Within the next budget year, government will fund the technical schools at Aleibiri; in addition, schools will be established for gifted and talented children; these when completed, will be equipped with boarding facilities. The training and retraining of teachers will be accorded high priority next year.
We have established a teacher’s training Institute as a department of the Isaac Boro college of education. Contract has been awarded for the administrative and classroom blocks for the training of teachers. We will commence the immediate review of our school curriculum aside science and technical education. In our effort to address the manpower deficiency, government has taken major steps to relocate the college of education with a student enrolment of close to 5000. Government has re-established the Bayelsa State College of Arts and Science to produce not only middle level manpower, but also to provide a second chance to remedy their education deficiencies.
The schools have kicked off and attendance is very encouraging.In 2013, government is proposing to establish two new schools to identify manpower deficiencies, which are the school of tourism and catering to train middle level manpower for the hospitality industry which government has made substantial investment. We anticipate a boom in tourism in this state soon. The first Bayelsa carnival will come up next year. The second school is that of Agriculture. This will be set up to train middle level manpower because we are serious about broadening the base of our economy to achieve maximum results. Both schools are expected to take off before the end of the first quarter.
On the state-owned Niger Delta University, we are not satisfied with the report of the visitation panel in spite of the capital investment made in that school so far. Accordingly, I have inaugurated governing council with a charge to turn it around and make it financially autonomous. Beyond subventions, government will encourage that University to be able to serve as a foremost Institute of learning. Furthermore, scholarship programmes will be strengthened and to also work hard with stakeholders to ensure that we begin to pay bursaries and other grants to students of Bayelsa state origin in our various schools of higher learning.
Mr. Speaker, the scholarship programme for post-primary school pupils of Bayelsa state origin and those in postgraduate studies are doing well. Government will also next year begin to provide free teaching aids, free books and desk and then by January, we will begin the distribution of school uniforms to all the schools. All these are ready, but if not for the floods, we would have gone far. Accordingly, the sum of #28.4 billion naira has been proposed for the Education subsector next year.
Mr. Speaker, as you are quite aware, the health subsector forms an important component of our Restoration Agenda. This informed the development of the policy of providing every local government head quarters with functional hospitals. The execution of that laudable policy has reached an advanced stage. Also the 500-bed Melford Okilo memorial hospital will benefit from our concessioning policy so that we can immediately put the hospital into use. We will continue to sustain the present regime of quality investments in the college of Health Technology and the Niger Delta University Teaching Hospital as well as the School of Nursing to ensure the accreditation of more of their programmes.I am quite sure that by the time our investments in the Health subsector matures, Health care delivery would have been greatly enhanced in the state. We have reinvigorated the fight against the HIV and Aids scourge in the state with the establishment of the HIV and Aids Agency in the state.
Accordingly, the sum of #7.7bn is hereby proposed for the Health Sector. Energy:Mr. Speaker, after series of consultations in the energy subsector, we have come to the regrettable and painful conclusion that the challenges in this very important subsector have become more daunting due to the none availability of a properly articulated Energy road map in the state. Therefore, the task we have given ourselves for the 2013 fiscal year in the production of a power master plan for the entire state. I am quite sure that this will provide a good guide for our investment decisions in the Energy subsector.
Accordingly, the sum of #6.2bn is earmarked for the Energy subsector. Agriculture:It is true that agriculture provides a reliable basis for employment generation both in the short and long terms. Yet, the Agriculture subsector with its enormous potentials has for many years suffered serious neglect. Mr. Speaker, we intend to reverse this unacceptable situation in 2013. To this end, a school of Agriculture will be established next year to ensure that our teeming farmers are exposed to new technologies designed to enable them improve on their productivity. Government will as a deliberate policy of boosting food production, establish large farms at Ebedebiri, Angalabiri, Abobiri and Isampou. Also, government will embark on the extension services and ensure better and easier delivery of credit and other valuable inputs to farmers next year. The sum of #2.7bn is therefore being proposed for Agriculture in the year 2013.
Trade and Investment Industry:The need to properly harness our potentials and advertise same to prospective investors necessitated the creation of this ministry. We intend to carry out an aggressive ‘foreign’ Direct Investment drive next year as, part of our multi-sectional approach to the creation of employment opportunities for our teeming youths. Also, we have established the Bayelsa Development and Investment Corporation [BDIC] as a special purpose vehicle to drive the process. Furthermore, the issue of building entrepreneurial capacity will be given a major boost next year.
The sum of #2bn is hereby proposed for this sub-sector. Water Resources:The provision of portable and clean drinking water will continue to be accorded priority attention by this administration in 2013. Modern water treatment plants will be established in various locations in the state, while works on the various ongoing water projects will be completed in 2013. The sum of #3.4bn is being proposed for Water Resources.
SCIENCE TECHNOLOGY AND MANPOWER DEVELOPMENT:
Mr. Speaker, Science and Technology being the cornerstone of industrialization given will be given special recognition. This has been amply demonstrated with the creation of a special Ministry for it. The continuation of a state policy on information and computer technology shall be completed and this will be followed immediately with the construction of a science and technology centre of excellence and innovation as well as renovation/furnishing of 8 ICT centres in the LGAs. The sum of #3.5 bn has been proposed for science, Technology and manpower development.
SPORTS DEVELOPMENT
Mr. Speaker, the potentials of the state in Sports are huge and this administration is determined to harness them properly to ensure greater unity and create the much needed employment opportunities for our teeming youths in the state. Construction work on the Bayelsa State stadium complex will start in earnest. Also, all outstanding works at the Samson Siasia Sports Complex will be completed next year. We will ensure that our Sports Academy at Asuama commences full-scale activities next year.
The funding of our football and other sporting outfits will also be sustained next year as they have done so much to boost our collective image as a people. The sum of #4.5 bn is allocated to the sports development sub sector. Housing and Urban DevelopmentIt is true that the housing deficit in the state is huge. Government will take pragmatic steps to address this problem next year.
In this regard, the construction of low cost houses for our teeming masses will be accorded high priority. Also low cost housing schemes in the 8 LGA Head quarters will get underway in 2013. Additionally, the Housing and Property Development Authority will be encouraged to fulfill its mandate of providing affordable housing to the people of Bayelsa State. The sum of #3.2bn is being proposed to the housing sub-sector. Budget Discipline
Mr. Speaker, let me say unequivocally that the management of public expenditure in the state will strictly adhere to measures of efficacy, efficiency and effectiveness.This administration is determined to foster transparency and openness in the governance of the state. We will take all necessary measures to forestall the possibilities of waste, inefficiency and corruption in the transaction of government business in the state.
We will ensure that all payments to be made in the year 2013 are based on value for money. All the measures developed to achieve cost reduction; particularly in the area of personnel cost and overhead will be sustained next year. Budget discipline will be our watchword in the 2013 financial year, as we will ensure greater prudence and fiscal discipline in the handling of government transactions.
We will also make deliberate efforts in the reduction of overhead and recurrent expenditure to channel our scarce resources for infrastructural development and to other key sectors of the economy. ConclusionOur government stands fully committed to ensuring that the fruits of the Restoration Agenda are shared by all sectors of our society, especially those living in the rural areas.
Therefore we must remain united, resolutely focused and unshakably committed to restoring the lost glory of our dear Bayelsa State.
As a united force against poverty, indolence and corruption, we will start our journey slowly but we will certainly arrive at the Bayelsa State of our dreams and aspirations.
Mr. Speaker, I have the honour to now present to you for the consideration and subsequently expeditious passage, the Draft Estimate for 2013 comprising; 1. Total Revenue N285.930 billion2. Total Recurrent Expenditure N133.235 billion3. Total Capital Expenditure N152.695 billion
God Bless Bayelsa State
I thank you
I want to express my appreciation to the dutiful way this Assembly has been performing the responsibilities assigned to it. I want to convey to you the deepest appreciation of your State government and indeed the good people of this State.
Mr. Speaker, considering the season, let me use this occasion to formally, wish you and all the members of this House of Assembly Merry Christmas and a happy and prosperous new year that awaits all of us in Jesus name. Mr. Speaker, today I’m here with your permission to present to you the 2013 Appropriation estimate from the Executive branch, which I believe will receive your usual kind and expeditious attention. It is a great honour and privilege for me to come into this hallow chambers once again to present the 2013 budget estimation to you, the representatives of our good and peace loving people.
Mr. Speaker, during the presentation of a revised 2012 appropriation estimate to this assembly, I detailed the fundamental principles and philosophies as well as the strategy for the smooth take off of our restoration agenda. Our first budget was specially designed to ensure that we laid a solid foundation for the programmes and aspiration of our restoration government.
Mr. Speaker, after about 9 months of serious restructuring, redesigning and re-organization of the entire government structure and philosophy in the state, we are glad to report to you that the state is now set for the full and aggressive implementation of all the programmes and projects of the restoration government in all sectors of our life beginning from 2013. It is for this reason that I feel confident to come before you today with a budget of consolidation of Restoration. It is a budget that has been carefully crafted to ensure thorough and speedy implementation of the various programmes and policies we have advanced to be implemented to some degree in the course of the out-going year. Let me take you through some of the guiding principles underlying our budget. The first is the issue of transparency and fiscal disciple.
Mr. Speaker and Honourable members of the House, in line with our promise, government has been giving the good people of the State, month by month transparency briefings, let me again, also thank you for the expeditious passage of the law that created the legal framework for this to be done. This has increased Public trust of donor agencies as well as the interest and respect of development partners. This administration is determined to foster transparency and openness in the conduct of government business going forward. We will take all necessary measures to forestall the possibilities of waste, inefficiency and corruption in the transaction of government business in this state at all levels.
We will ensure that all payments are made in the year 2013 based on value for money. All the measures developed to achieve cost reduction particularly in the area of Personnel and Overhead costs will be sustained next year. Budget discipline will be our watchword in the 2013 financial year and will ensure greater prudence and greater fiscal discipline. The second issue, we are very much concerned about, is the need to reduce the recurrent expenditure and therefore the running cost of government.
Government has continued with the policies aimed at addressing the huge wage bill of the state that we inherited that was built over several years and we have come up with a policy by which, next year, we are going to reduce it through the unconcluded biometric exercise that was somehow started and suspended. This, we believe will give us some positive results. We will work with our Permanent Secretaries, heads of various departments and agencies to clean up our nominal roll. We have also introduced daily attendance record to ensure that those who do not work are not paid salaries. We will continue to work with consultants to ensure that the processes of staff engagement, salary preparation, salary payment, monitoring of staff attendance at their places of work are computerized and this should be a basis for the preparation of nominal roll for payment of salaries.
The staff biometric database will upgrade for migration to the human resource platform to make all salary payments E-based. Right sizing the public service will be pursued will vigour and efforts will be put in motion to prevent payroll fraud by way of the bill that you have already passed and which we have already assented to. We will continue to fish out all those wrongly employed in the public service and ensure their immediate disengagement at all levels both in the local governments and all other agencies that are subject to fraud. We will also make deliberate efforts in the reduction of overheads and recurrent expenditure to channel our scarce financial resources for infrastructural development and for deployment of other key sectors of our economy.
We will not stop these processes until we have made significant progress in ensuring that all ghost workers, persons who are experts in inflating salary figures are cleared from our state wage bill. Such people will be prosecuted in the provisions of the bill that this Assembly has dutifully passed which we have since signed into law. The other issue Mr. Speaker, that is of interest and will be pursued with vigour next year is that of raising our IGR base. Our state is having one of the lowest internally generated revenue profiles. To address this, your government has put in place a number of policies to ensure that our IGR comes up. An Internal Revenue Committee was set up which identified a number of untapped sources of revenue and the loopholes in the current system.
Government has set up a new board, which I’m going to inaugurate this afternoon made up of men of experienced to handle our IGR progress. We are also setting up a Tax IGR assessment and Review Committee to coordinate all our IGR generating MDAs and activities. This, as a result of our seriousness will be led by the Deputy Governor of the state. I have directed the Attorney-General and one other officer to review and come up with a proposed bill to streamline all IGR processes and capture those potential sources that we have not taken advantage of. For the civil servants and political appointees, we have set up machinery to ensure that we all pay our correct taxes in accordance to the relevant tax laws of this country, with particular reference to the Personal Income Tax Act (PITA). In the same vein, we will ensure that all multinational companies and all taxable adults and other entities doing legitimate business in our state will be made to pay the correct taxes as and when due to further boost the IGR base of our state.
Bayelsans will be rest assured that we will be very transparent in the utilization of their tax money.to this end, I have directed that specific bank accounts be opened for IGR generation and the amount generated will be announced to you every month beginning from next month. Let me also Mr. Speaker, with pleasure report to you that with the steps we have taken so far, in the out-going year, our IGR has gradually started to increase from less than 100 million naira, and I can report to you that the last report I have, show an IGR monthly of over 500 million naira.
On the performance of the out-going budget, the year 2012 was a year of strategic planning and programming for our administration. Consequently all the institutional and administrative structures needed for effective service delivery with particular focus on good governance, transparency and prudence have been successfully erected and clearly identified. Therefore, the good people of Bayelsa State, I can rightly express an aggressive, determined and a properly coordinated execution of our restoration programme in year 2013.
You will recall that the initial appropriation for the 2012 fiscal year was the sum of 238.157 billion naira. Due to the devastating effects of the flood this year, government raised a supplementary budget of 16 billion naira and this was passed, the sum of 1.5bn was appropriated which government used to augment the various programmes that are connected to alleviating the plight of flood victims. Of this amount, 98.719bn or 38.715% was earmarked in the entire budget for recurrent expenditure while the sum of 156.315bn or 61.29% was devoted for capital expenditure. Mr. Speaker, permit me to use this opportunity to thank the people of Bayelsa State for their support and resilience in the trying period of the flood disaster which actually stalled our developmental efforts which you know also brought a lot of hardship.
In terms of revenue, which accrues to the state during the out-going year, actual receipts stand at 206.509bn or 80.98% of the budgeted sum as at the end of November 2012.The breakdown is as follows: Statutory Allocation was #25.283bn13% Derivation actually received #84.397 bnExcess crude and Budget augmentation #31.193 bnOther receipts were #22.811 bnIGR came to just #4.752 bn Capital Receipts #21.975 bn. So we have a total receipt of #206.509 bn, a short fall of more than #30 bn.
The breakdown of our expenditure was #156.868 bn as at the end of November for this year.The breakdown is as follows:Personnel cost #31.599 bnOverhead cost #41.605 bn Consolidated Revenue Fund charge #68.908 bnCapital expenditure #44.75 bnMaking a total expenditure profile of #186.868 bn The 2013 budget proposals have been carefully put together using the 2013-2015 Medium Term Expenditure profile as its basic platform.
Consequently, the 2013 budget comes with a total proposal of #285.930 bn comprising of #133.235 bn or 46.60% for recurrent expenditure and #152.695 bn or 53.40% for capital expenditure. The sum total of our estimate is expected to be #38.028 bn. The projected revenue profile of our state for the year 2013 consists of the following:1. Statutory Allocation-------------------#27.268bn2. Excess Crude/Budget augmentation------------------------#45.500bn3. VAT-----------------------------------------#9.955bn4. 13% Derivation------------------------#160.706bn5.
Internally Generated Revenue------#4.473bn6. Capital Receipts------------------------#38.028bnTotal --------------------------------------- #285.930bn On the other hand, our expenditure profile for the year under consideration is as follows:1. Personnel Cost: -----------------#49.142bn2.Overhead Cost ------------------#28.905bn3.CRFC ----------------- #55.188bn4.Capital Expenditure ---------------- #152.695bn Total -----------------#285.930bn The 2013 Budget Estimates are for massive physical infrastructure, revolutionary investment in agriculture, tourism hospitality, security and education, which we have declared free.
Permit me now to outline the strategic policies and programmes of the 2013 Budget. Works and Infrastructure:Mr. Speaker, as I have said and demonstrated severally in the course of the past nine months, the key to unlocking the huge developmental potentials of the state remains in the massive provision of investment in physical infrastructure. I’m aware of the concerns of some well meaning citizens of this country whether I’m not undertaking too much by way of the ambitious programmes, which we have unfolded. My answer to you is that it is better for us to dream big; it is better for us to stretch ourselves, resources and our imagination to ensure that we catch up with the rest of the whole world because we are completely
I intend not to fail, there is no project that we have abandoned; there is no project that we inherited that we are not paying attention to and we will ensure that, within the tenure of our government all these programmes and policies would be funded. There is no project on going that does not receive money. All projects that we have started, including the several that were on going, there is none that are stalled due to funding.
Accordingly, very high priority will be accorded to this critical subsector of ourEconomy: I have always said that our wealth beyond oil and gas, beyond investing in our human resources, lies in the ocean. We must conquer our difficult terrain to ensure that the roads to the 3 senatorial districts are completed and that we get to the Atlantic Ocean from the 3 main flanks. The Eastern flank through Nembe-Brass, the Central flank through Yenagoa-Oporoma-Ukubie and the Western flank through Sagbama-Ekeremor, because that is where our wealth really lies. And until we achieve this we would not have created infrastructural greatness as a state.
Accordingly, knowing that this ambitious programme of infrastructural turn around will not be achieved within the narrow confines of available government resources we are going to work to create an enabling environment and also come to this hallow chambers request that you consider working on the legal and Institutional framework to develop a reliable and a responsible concession policy and legal framework. One of the top priority project that will be the immediate beneficiary of the concession policy include, Ekeremor Agge road, Nembe Brass road, completion of the Tower Hotel and the completion of Melford Okilo memorial Hospital.
These are gigantic projects and we have to be very creative to bring the private sector, which has the funds and technical knowledge to work with us to ensure that, they are brought to a respectable conclusion. Most of these projects have been on for too long. Within the life span of our budget, we will see the completion of most of these projects. I am confident that, with the policies we have taken and within the first quarter of next year, some sections of the hospital will be put to use. Mr. Speaker, as you all are aware, there are some important jobs going on in the state.
All we are doing is to see that, we create the infrastructure within our state capital to make it a befitting one. Let me use this occasion to salute once again, the resilience and understanding shown by commuters and road users in Bayelsa state for the traffic congestion that we have all been experiencing for some time. This should not take anyone by surprise because we made a promise that the whole of Yenagoa will be a massive construction yard. We all have to be patient because we cannot prepare Omelet without breaking eggs.
This is a period of sacrifice, let us show the necessary restraint and not complain over everything because good roads and good bridges do not spring up over night. While we have a clear idea of the way forward, so bear with us. I want to talk about the dualisation of Isaac Boro road; road Safety road and several other dualisation of roads going-on and inform you that they will be completed within the 2013 budget. Also with the proposed Igbogene bye pass by which we want to link it with a dual carriageway to the Bayelsa palm road.The Airstrip, to be located on the Yenagoa – Amassoma – Egbedi axis is central to the state, and will be about 25 minutes from the city centre.
Let me use this opportunity to thank the Federal Government for partnering with us on this critical project. The term of the partnership are these: The Federal Government through its agency, NDDC and the ministry of aviation are to handle the sand filling as well as the construction of the terminal and the navigational, and we decided to undertake the most critical element of an airport which is the run-way.
The Federal Government through NDDC has since awarded the contract for sand filling of the site. The Federal Executive Council has also awarded contract for the construction of the terminal buildings. On our part, as a state government, we are responsible for acquisition and clearing of the land. Clearing of the site is going on and if not within the life span of the next budget, very early in 2014, we will have an airstrip or airport.
We are working with a world-class team and other specialists, and by next year contract for the project will be awarded as funds for that has already been set aside to begin the process of construction of the airstrip. We have also started work on the additional secretariat annexes and will be delivered within the next quarter of next year.
The Ecumenical project will also start in earnest in the course of the 2013 budget year; and so the sum of #38.8 billion naira has been earmarked for the works and infrastructure sub-sector. On education, we have in the last nine months, even with the challenges of flooding, we have begun the construction of 400 primary school buildings and 400 hundred teachers’ quarters spread across the state at over #9 billion naira cost. This is an unprecedented investment in education particularly at that level of education.
Mobilization for the said project has already begun and contactors have gone to site in most of the projects and in 2013; we hope we will be able to complete phase one. We hope to also start phase two to take another set of communities because having a good quality learning environment is the basic right of every Bayelsan child. In pursuance of our policy in secondary education, we have begun the building of model schools in every local government area with boarding facilities to accommodate 1000 students. Contract has been awarded and mobilization fee paid. In 2013, Government intends to conclude construction work on at least 28 constituency model secondary schools with boarding facilities at the cost of #200 million.
Let me Mr. Speaker and Honourable members convey the gratitude of government for your willingness to work with us in addressing this issue of educational deficiency. In the course of our interactions, you saw the need to channel your constituency projects for the year 2012 and next year, making a total of #200 million each member for the construction of these secondary schools in your respective constituencies. We have started the process of making awards and before the end of this year, award letters will be out. On technical education, we intend to make quality investment in this area of school educational system. Within the next budget year, government will fund the technical schools at Aleibiri; in addition, schools will be established for gifted and talented children; these when completed, will be equipped with boarding facilities. The training and retraining of teachers will be accorded high priority next year.
We have established a teacher’s training Institute as a department of the Isaac Boro college of education. Contract has been awarded for the administrative and classroom blocks for the training of teachers. We will commence the immediate review of our school curriculum aside science and technical education. In our effort to address the manpower deficiency, government has taken major steps to relocate the college of education with a student enrolment of close to 5000. Government has re-established the Bayelsa State College of Arts and Science to produce not only middle level manpower, but also to provide a second chance to remedy their education deficiencies.
The schools have kicked off and attendance is very encouraging.In 2013, government is proposing to establish two new schools to identify manpower deficiencies, which are the school of tourism and catering to train middle level manpower for the hospitality industry which government has made substantial investment. We anticipate a boom in tourism in this state soon. The first Bayelsa carnival will come up next year. The second school is that of Agriculture. This will be set up to train middle level manpower because we are serious about broadening the base of our economy to achieve maximum results. Both schools are expected to take off before the end of the first quarter.
On the state-owned Niger Delta University, we are not satisfied with the report of the visitation panel in spite of the capital investment made in that school so far. Accordingly, I have inaugurated governing council with a charge to turn it around and make it financially autonomous. Beyond subventions, government will encourage that University to be able to serve as a foremost Institute of learning. Furthermore, scholarship programmes will be strengthened and to also work hard with stakeholders to ensure that we begin to pay bursaries and other grants to students of Bayelsa state origin in our various schools of higher learning.
Mr. Speaker, the scholarship programme for post-primary school pupils of Bayelsa state origin and those in postgraduate studies are doing well. Government will also next year begin to provide free teaching aids, free books and desk and then by January, we will begin the distribution of school uniforms to all the schools. All these are ready, but if not for the floods, we would have gone far. Accordingly, the sum of #28.4 billion naira has been proposed for the Education subsector next year.
Mr. Speaker, as you are quite aware, the health subsector forms an important component of our Restoration Agenda. This informed the development of the policy of providing every local government head quarters with functional hospitals. The execution of that laudable policy has reached an advanced stage. Also the 500-bed Melford Okilo memorial hospital will benefit from our concessioning policy so that we can immediately put the hospital into use. We will continue to sustain the present regime of quality investments in the college of Health Technology and the Niger Delta University Teaching Hospital as well as the School of Nursing to ensure the accreditation of more of their programmes.I am quite sure that by the time our investments in the Health subsector matures, Health care delivery would have been greatly enhanced in the state. We have reinvigorated the fight against the HIV and Aids scourge in the state with the establishment of the HIV and Aids Agency in the state.
Accordingly, the sum of #7.7bn is hereby proposed for the Health Sector. Energy:Mr. Speaker, after series of consultations in the energy subsector, we have come to the regrettable and painful conclusion that the challenges in this very important subsector have become more daunting due to the none availability of a properly articulated Energy road map in the state. Therefore, the task we have given ourselves for the 2013 fiscal year in the production of a power master plan for the entire state. I am quite sure that this will provide a good guide for our investment decisions in the Energy subsector.
Accordingly, the sum of #6.2bn is earmarked for the Energy subsector. Agriculture:It is true that agriculture provides a reliable basis for employment generation both in the short and long terms. Yet, the Agriculture subsector with its enormous potentials has for many years suffered serious neglect. Mr. Speaker, we intend to reverse this unacceptable situation in 2013. To this end, a school of Agriculture will be established next year to ensure that our teeming farmers are exposed to new technologies designed to enable them improve on their productivity. Government will as a deliberate policy of boosting food production, establish large farms at Ebedebiri, Angalabiri, Abobiri and Isampou. Also, government will embark on the extension services and ensure better and easier delivery of credit and other valuable inputs to farmers next year. The sum of #2.7bn is therefore being proposed for Agriculture in the year 2013.
Trade and Investment Industry:The need to properly harness our potentials and advertise same to prospective investors necessitated the creation of this ministry. We intend to carry out an aggressive ‘foreign’ Direct Investment drive next year as, part of our multi-sectional approach to the creation of employment opportunities for our teeming youths. Also, we have established the Bayelsa Development and Investment Corporation [BDIC] as a special purpose vehicle to drive the process. Furthermore, the issue of building entrepreneurial capacity will be given a major boost next year.
The sum of #2bn is hereby proposed for this sub-sector. Water Resources:The provision of portable and clean drinking water will continue to be accorded priority attention by this administration in 2013. Modern water treatment plants will be established in various locations in the state, while works on the various ongoing water projects will be completed in 2013. The sum of #3.4bn is being proposed for Water Resources.
SCIENCE TECHNOLOGY AND MANPOWER DEVELOPMENT:
Mr. Speaker, Science and Technology being the cornerstone of industrialization given will be given special recognition. This has been amply demonstrated with the creation of a special Ministry for it. The continuation of a state policy on information and computer technology shall be completed and this will be followed immediately with the construction of a science and technology centre of excellence and innovation as well as renovation/furnishing of 8 ICT centres in the LGAs. The sum of #3.5 bn has been proposed for science, Technology and manpower development.
SPORTS DEVELOPMENT
Mr. Speaker, the potentials of the state in Sports are huge and this administration is determined to harness them properly to ensure greater unity and create the much needed employment opportunities for our teeming youths in the state. Construction work on the Bayelsa State stadium complex will start in earnest. Also, all outstanding works at the Samson Siasia Sports Complex will be completed next year. We will ensure that our Sports Academy at Asuama commences full-scale activities next year.
The funding of our football and other sporting outfits will also be sustained next year as they have done so much to boost our collective image as a people. The sum of #4.5 bn is allocated to the sports development sub sector. Housing and Urban DevelopmentIt is true that the housing deficit in the state is huge. Government will take pragmatic steps to address this problem next year.
In this regard, the construction of low cost houses for our teeming masses will be accorded high priority. Also low cost housing schemes in the 8 LGA Head quarters will get underway in 2013. Additionally, the Housing and Property Development Authority will be encouraged to fulfill its mandate of providing affordable housing to the people of Bayelsa State. The sum of #3.2bn is being proposed to the housing sub-sector. Budget Discipline
Mr. Speaker, let me say unequivocally that the management of public expenditure in the state will strictly adhere to measures of efficacy, efficiency and effectiveness.This administration is determined to foster transparency and openness in the governance of the state. We will take all necessary measures to forestall the possibilities of waste, inefficiency and corruption in the transaction of government business in the state.
We will ensure that all payments to be made in the year 2013 are based on value for money. All the measures developed to achieve cost reduction; particularly in the area of personnel cost and overhead will be sustained next year. Budget discipline will be our watchword in the 2013 financial year, as we will ensure greater prudence and fiscal discipline in the handling of government transactions.
We will also make deliberate efforts in the reduction of overhead and recurrent expenditure to channel our scarce resources for infrastructural development and to other key sectors of the economy. ConclusionOur government stands fully committed to ensuring that the fruits of the Restoration Agenda are shared by all sectors of our society, especially those living in the rural areas.
Therefore we must remain united, resolutely focused and unshakably committed to restoring the lost glory of our dear Bayelsa State.
As a united force against poverty, indolence and corruption, we will start our journey slowly but we will certainly arrive at the Bayelsa State of our dreams and aspirations.
Mr. Speaker, I have the honour to now present to you for the consideration and subsequently expeditious passage, the Draft Estimate for 2013 comprising; 1. Total Revenue N285.930 billion2. Total Recurrent Expenditure N133.235 billion3. Total Capital Expenditure N152.695 billion
God Bless Bayelsa State
I thank you
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